LG not to be affected by Free Trade Agreement
Kolkata, May 10: Operations of LG Electronics India Private Limited, the leading consumer electronics company, will not be affected following signing of Free Trade Agreement (FTA) between India and Thailand, VP (sales and marketing) Girish Rao said today.
The Indian operations would not become unviable if the government suitably altered the excise duty structure. Given LG's huge sales volumes in India, the company's plants would not become unviable, Mr Rao said.
The manufacturing cost in India would still remain cheaper despite the India-Thailand FTA, he said.
However, he said the Indian government would have to provide a level-playing field by altering the excise duty structure.
Currently, LG, a subsidiary of LG Electronics in South Korea, is importing a number of electronics items into India from its manufacturing base in Bangkok.